Advice: Car Loan Bad credit

GAH

Why the need to take a loan and buy a car for £3000-£5000.

You can get a relativly decent run around from £500 - £1000.

Once you have bought it, if you then want to buy something better, save the £200 a month you would have spent on a loan, and in just over a year, you would have £3000 Cash to put towards a better model if you wanted, there will then be no need to pay a high APR on a loan.

BackOnTrack

Might also be worth seeing if you can rent a car instead of buying. £200 a month should be enough for something.

DCFC79

Dondaddyd wrote: »

I do need a car for both professional and personal reasons. And unfortunately the sooner the better. It is possible that I could get a cheaper car, would that in itself make a bad credit loan more viable?

As I said being able to afford payments of up to £200 over a 2-3 year period isn't really the issue. It's who to go with.

but why a £5k car, why not a car priced at £1,000,

you can either save save save, do you not have room for a lodger to get you extra cash, anything to sell to get the cash

Apples2

Who to go with isn't the issue, the issue is who will accept you.

Buying cars on finance is traditionally easier to obtain than an unsecured personal loan from a bank.
Default on the finance and they will have the car back. It's easier because they have something to secure the money against.

Only you know if you have solved the reasons behind your poor credit files.

Even defaulting on a Car secured with finance is seldom the end of the problems once they have snatched the car back.

Dondaddyd

BackOnTrack wrote: »

Your best bet is probably wait until the default shows as settled then go to a dealership and see if they can do anything to help, be honest with them. I would expect the answer to be that they won't be able to get finance for you but it is probably your best bet.

It is also quite possible that if you can get around 1k together you could get an older car that will still be reliable. Japanese cars from the 90's are very reliable and may hit this price point just look out for anything that has been thrashed by boy racers.

Thanks you've given me something to think about.

I was planning on paying off the outstanding amount of the default next week, with the final amount paid directly to the company at the same time asking them (nicely) to update my credit record ASAP. It probably won't do anything but I feel like I need to do something.

DCFC79

What about hiring a car

Dondaddyd

DCFC79 wrote: »

What about hiring a car

I did look into that, leasing, but again bombarded with companies that all seemed expensive.

But that would certainly be an option yes.

KingElvis

Bad credit loans are a thing of the past, basically, they don't exisit any longer and the firms who did dabble in this hideously risky marketplace are now bust themselves, Welcome Finance, Yes Car Credit etc.

The gap they left in the market has been filled by dishonest brokers, the payday crew, log book loans and doorstep lenders.

The one who may be able to help you are Carshaft but my advice is to steer well clear of them.

randomnut

Apples2 wrote: »

It's like asking for a Tall, Short person, or a Fat skinny bloke.

Haha that reminds me of an episode of My Name Is Earl.

" Randy: Earl! Earl! The fair is in town! Remember last year when they had the worlds tallest midget?!

Earl: Randy, I think that was a scam... "

Dondaddyd

OK so the options are leasing, hiring and/or saving.

Better count the beans.

Thanks